SPAC is short for special purpose acquisition corporation. This company raises capital on the stock exchanges with the goal of merging or taking a private firm public in two years. Investors are often unaware of the name and target company when SPAC trades on the stock market.

There are signs that retail small-time investors may be responsible for the massive rally in SPAC. The single most active stock traded on Fidelity’s brokerage platforms was DWAC. While the ticker was a top-rated topic on Reddit’s WallStreetBets, and SPAC was a hot topic on Twitter, it was still popular. It was possible that DWAC is having a moment of memestock. GameStopAnd AMC

The new company, the yet-to-be-launched Trump Media & Technology Group, said its “mission is to create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America.”

This was after Trump had been banned from social media platforms TwitterAnd FacebookSince early in the year, he was charged with starting Jan. 6 Capitol Riot. by a mob of his supporters.Violence disrupted the verification of Trump’s electoral college loss to President Joe Biden

SPAC warrants, which trade as DWACW under the ticker DWACW on Thursday, saw a large trading volume. As a sweetener to early investors, warrants can offer them more cash compensation. These contracts give holders the ability to buy additional shares at a specific price in the future.

— CNBC’s Dan Mangan contributed reporting.